Sansera Engineering Ltd

- Sansera Engineering Limited recently completed a Qualified Institutional Placement (QIP) raising approximately INR1,200 crore (Page 6). - The raised capital is primarily being used for debt repayment, aiming to repay INR700 crore of debt by March 2025, which will reduce interest cost by about INR55 crore annually (Page 13). - No additional immediate fundraising plans through debt or equity were indicated. - The company plans to use the strengthened balance sheet for future growth opportunities, including capex for expanding manufacturing capabilities and potential strategic expansions such as a small assembly plant in the U.S. (Pages 6-7). - Future fund deployment focuses on land and building expansions, capability enhancements in tech-agnostic, xEV, and non-auto segments, and possible M&A, but no explicit new fundraising is currently planned (Page 7).

- Sansera Engineering plans to spend INR425-450 crores in capex for the current year, excluding new land parcels. - Signed a letter of allotment for 55 acres of land in Harohalli, Karnataka, aimed at future order execution focused on EVs and other sectors. - Expanding factory building at Plant 9 to set up a new special process line primarily for aerospace and non-automotive sectors. - Acquired a 120,000 sq.ft low-cost manufacturing facility in Pantnagar. - Over 60% of future capex will target new-age components in tech-agnostic, xEV, and non-auto sectors. - Setting up a small assembly plant in the U.S., with plans dependent on future U.S. policy shifts. - Evaluating opportunities for growth through warm-forged and hot-forged aluminum components. - Raised approx. INR1,200 crores in a QIP, primarily used for debt repayment and to fund expansion and capability-building initiatives.

- Non-auto segment expected to grow 35%-40% from Q1 next financial year as off-road segment recovers (Page 13). - Aerospace, defense, and semiconductor combined expected to grow at 35%-40% CAGR over the next 2-3 years, but revenue share to increase modestly to ~5.5%-6% from current ~4% (Page 14). - Auto ICE business projected to outperform industry growth by 8%-10% with significant contribution from passenger vehicle exports (Page 13). - Tech-agnostic and xEV sectors continue fastest growth at ~53%-55% YoY driven by large North American EV customers (Page 4). - Aerospace order book expanded to ~INR325-350 crores; business expected to ramp up strongly post Boeing strike resolution (Page 9). - Overall, company targets sustained outperformance and healthy growth supported by diversified orders from domestic and export markets (across auto and non-auto) (Page 6–14).

- Sansera Engineering expects a revenue growth outperformance of 8-10% over the industry in the Auto ICE segment, driven by new client additions and export expansion. - Non-auto segment (aerospace, defense, semiconductor, off-road, and agriculture) is projected to grow at a 35-40% CAGR over the next 2-3 years but will increase revenue share modestly from current 4-4.5% to around 5.5-6%. - Aerospace and defense order book is healthy (~INR325-350 crores), with a bullish outlook despite recent headwinds; growth momentum expected from Q4 FY25. - Margins in aerospace and defense and tech-agnostic export businesses are margin-accretive, expected to improve operating profitability. - Swedish facility EBITDA expected to improve from ~5.5-6% to double digits by end of FY26, supporting margin expansion. - Debt repayment (~INR700 crores) expected to reduce annual interest cost by ~INR55 crores, positively impacting PAT and EPS. - Overall, margin improvement initiatives and product diversification should drive earnings growth medium-term.

- As of September 2024, Sansera Engineering Limited's total order book stood at approximately INR2,055 crores. - More than 50% of the order book (around INR500 crores) is from the non-auto segment, which includes: - Aerospace: about 36-37% of non-auto orders. - Semiconductor business: constituting about 55% of the non-auto order book. - Auto ICE segment order book is healthy at approximately INR979 crores. - Domestic orders make up about 40%, and exports constitute roughly 60% of total orders. - Peak revenues anticipated from aerospace, defense, and semiconductor sectors combined are around INR325 to 350 crores. - The company expects around 35% to 40% CAGR growth in aerospace, defense, and semiconductor over the next 2-3 years. - Recent order wins include INR50-55 crores from the Airbus A220 program, with opportunities expected to extend to other models like A320. - The company is actively pursuing new orders in aerospace, defense, semiconductors, and other tech-agnostic sectors.